Fuso Pharmaceutical Industries,Ltd. (4538) AI Stock Analysis

• Market Cap: ¥19.72B
• Dividend Yield: 3.87%
• Average Volume (3M): 17.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 7.50%
• EPS Growth: -281.41%
• Country: JP
• Employees: 1,370
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 43.26
• Shares Outstanding: 9,451,169
• 10 Day Avg. Volume: 18,340
• 30 Day Avg. Volume: 17,486
• PEG Ratio: 0.07
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -3.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥2,256.00 ▼(-0.88% Downside)

Fuso Pharmaceutical Industries' overall stock score is driven by solid financial performance in terms of revenue growth and profitability, but is hampered by significant cash flow challenges. Technical indicators suggest neutral momentum, while valuation is mixed with a negative P/E ratio but a strong dividend yield.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective product demand, supporting long-term business expansion and stability.

Profitability Margins

Improved profitability margins suggest effective cost management and operational efficiency, which are crucial for sustainable financial health.

Balance Sheet Health

A stable balance sheet with manageable debt levels ensures financial flexibility and resilience against economic fluctuations, supporting long-term growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates difficulties in cash generation, which could limit investment in growth opportunities and strain financial resources.

Operational Efficiency

Moderate operational efficiency suggests potential for improvement in cost control and resource utilization, which is vital for enhancing profitability.

Cash Management

Negative cash flow ratios indicate inefficiencies in converting income into cash, which can impact liquidity and financial stability over time.

Fuso Pharmaceutical Industries,Ltd. Business Overview & Revenue Model

Company Description

Fuso Pharmaceutical Industries, Ltd. (4538) is a Japanese pharmaceutical company engaged in the research, development, manufacturing, and marketing of a diverse range of pharmaceutical products. The company primarily focuses on therapeutic areas such as oncology, cardiology, and immunology, and offers a variety of prescription medications, generic drugs, and over-the-counter products. Fuso is committed to advancing healthcare solutions through innovation and quality, aiming to improve patient outcomes and support the medical community.

How the Company Makes Money

Fuso Pharmaceutical Industries generates revenue through multiple streams, primarily from the sale of its pharmaceutical products, including prescription medications and generics. The company has established partnerships with healthcare providers and distributors, allowing for an extensive market reach. Additionally, Fuso engages in research and development (R&D) collaborations with other pharmaceutical firms and institutions, which can lead to financial gains through licensing agreements and joint ventures. The company's ability to innovate and bring new drugs to market, coupled with its focus on high-demand therapeutic areas, significantly contributes to its revenue generation.

Fuso Pharmaceutical Industries,Ltd. Financial Statement Overview

Summary

Fuso Pharmaceutical Industries shows solid revenue growth and stable profitability margins. However, it faces significant challenges in cash flow management, with negative free cash flow and cash generation issues. The balance sheet remains robust with manageable debt levels.

Income Statement

Fuso Pharmaceutical Industries has shown consistent revenue growth, with a 9.31% increase from 2024 to 2025. The gross profit margin for 2025 stands at 27.3%, indicating efficient cost management. The net profit margin improved to 4.59%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, are moderate at 6.82% and 10.39% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.54, reflecting prudent leverage levels. The return on equity is 7.11%, showing satisfactory returns on shareholders' investments. Equity ratio is healthy at 49.48%, indicating a strong equity base relative to total assets. However, the slight increase in total debt warrants attention for future leverage control.

Cash Flow

The cash flow statement shows challenges, with a negative free cash flow of -5.43 billion yen in 2025, marking a significant decline. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The free cash flow to net income ratio is also negative, underscoring the need for improved cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.50B	60.56B	55.41B	51.02B	49.63B	49.25B
Gross Profit	4.08B	16.53B	13.52B	13.74B	13.40B	14.11B
EBITDA	1.36B	6.29B	4.20B	4.63B	4.47B	4.79B
Net Income	462.00M	2.78B	1.38B	1.60B	1.48B	1.61B
Balance Sheet
Total Assets	86.99B	79.05B	75.80B	72.47B	69.33B	69.88B
Cash, Cash Equivalents and Short-Term Investments	3.16B	6.26B	5.12B	8.01B	7.35B	7.07B
Total Debt	28.23B	21.29B	12.72B	12.63B	12.09B	13.20B
Total Liabilities	53.81B	39.94B	39.14B	36.82B	34.80B	36.19B
Stockholders Equity	33.18B	39.11B	36.66B	35.65B	34.53B	33.68B
Cash Flow
Free Cash Flow	0.00	-5.43B	-2.96B	1.28B	2.01B	2.02B
Operating Cash Flow	0.00	-3.31B	627.00M	2.85B	3.50B	3.23B
Investing Cash Flow	0.00	-3.17B	-3.54B	-1.37B	-1.55B	-978.00M
Financing Cash Flow	0.00	7.62B	14.00M	-813.00M	-1.67B	-2.45B

Fuso Pharmaceutical Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2276.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4538, the sentiment is Positive. The current price of 2276 is above the 20-day moving average (MA) of 2195.35, above the 50-day MA of 2170.80, and above the 200-day MA of 2189.49, indicating a bullish trend. The MACD of 20.27 indicates Negative momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 89.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4538.

Fuso Pharmaceutical Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4524	65 Neutral	¥8.78B	15.16	―	2.55%	3.23%	42.87%
4539	64 Neutral	¥5.52B	11.01	―	3.25%	4.25%	―
4574	63 Neutral	¥14.87B	17.49	―	―	-5.41%	―
4577	63 Neutral	¥39.87B	20.16	―	2.77%	7.56%	-48.91%
4538	60 Neutral	¥19.72B	-4.87	―	3.87%	7.50%	-281.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥9.75B	135.19	―	1.07%	5.42%	-62.03%

Fuso Pharmaceutical Industries,Ltd. Corporate Events

Fuso Pharmaceutical Reports Mixed Financial Results for 2025

Fuso Pharmaceutical Industries, Ltd. reported its non-consolidated financial results for the six months ending September 30, 2025, showing a 5% increase in net sales compared to the previous year, despite a significant decline in operating and ordinary profits. The company forecasts a slight increase in net sales for the full fiscal year ending March 31, 2026, but anticipates a decrease in profits. The financial results reflect challenges in maintaining profitability amidst sales growth, which may impact stakeholder expectations and market positioning.

Fuso Pharmaceutical Reports Increased Sales but Declining Profits

Fuso Pharmaceutical Industries reported a 5% increase in net sales for the six months ending September 30, 2025, compared to the same period in 2024. However, the company experienced a significant decline in profits, with operating profit down by 48.8% and ordinary profit decreasing by 47.2%. The company’s financial position showed a slight increase in total assets, but a decrease in the equity ratio. The forecast for the fiscal year ending March 31, 2026, anticipates modest growth in net sales but a further decline in profits, reflecting ongoing challenges in maintaining profitability.